Indian food and grocery delivery startup Swiggy has received approval from its shareholders for a $1.25 billion initial public offering, as per regulatory filings with India’s ministry of corporate affairs.
The company said it plans to raise up to 37.50 billion rupees ($450.01 million) through a fresh issue of shares, while some existing shareholders will sell shares worth 66.64 billion rupees ($799.67 million).
Swiggy appointed co-founders Sriharsha Majety and Nandan Reddy as executive directors during an extraordinary general meeting on April 23, in which it received the go-ahead for the IPO. Majety was designated as managing director and group CEO.
The regulatory filing did not mention a date for the IPO. However, Reuters previously reported that the company could likely go public later this year. Zomato, Swiggy‘s main rival in the food delivery space, listed in 2021.
As per a Bernstein note from January, Zomato held a roughly 54% share in the food delivery from a gross merchandise value perspective as of the first half of calendar year 2023, while Swiggy held the rest.
Swiggy‘s backers include Prosus, Accel, SoftBank, and Invesco among several others. The company was valued at $10.7 billion when it raised $700 million in 2022.
Last month, Reuters reported that Swiggy incurred a loss of $200 million with a revenue of $1.02 billion for the nine months till December 2023, based on an internal document.
Reuters